Does paying a hosp debt build credit?

[Tom_Mi]

My wife incurred a huge debt after filing... panic attacs..1wk stay getting it under control, and a 3,000 bill to us.

I know it's obvious that NOT paying it will hurt our rebuilding effort.

My question is simply... if I setup a payment program with the hospital, do hospitals report those payments as POSITIVE activity?

[AngelinaCat]

To be perfectly honest, I don't know. I DO know that a for-profit hospital and a Medical Group that I owed money to petitioned the BK Court to prioritize their claims above that of any other creditor, including the IRS. The trustee did not allow it.

Now that we are discharged, the Medical Group is dunning us for their payment, which was discharged. So far we haven't heard anything from the hospital. As for the Medical Group, we sent their statement, a copy of the Discharge Order, and the applicable BK law that they are breaking to them, with a note that said if they keep it up, we will notify the trustee.

I know that really doesn't answer your question. But any new debt incurred after filing is not included in the BK, so you are responsible. Talk to the hospital and see what you can arrange. The person you talk to should be able to answer your question.

Good wishes to you both, and I hope the Mrs. is doing much better.

[lookingforward]

The hospitals in my area do not report any payment arrangement you make with them. They WILL report if you do not pay. I have had several bills set up with payment arrangements and they have never appeared on my credit report. When I stopped payments they showed up then.
Of course, hospitals in your area might be different.
I worked in the business office of the hospital in our town in billing and I can give you a tip.
Ask for a discount. People did it there all the time. If you can come up with half of the bill, ask for the other half to be written off. I saw it happen dozens of times. If the bill goes to a collection agency they will get half anyway, so they are willing to work with you. (Here anyway)
Even if they don't discount half, usually they will work with you with a discount. You didn't say if you had insurance. Sometimes when you have an insurance with a PPO agreement with the hospital, they aren't as willing to discount, because the agreement reduces the billed amount to the insurance.
But it can never hurt to ask.

[veryclose]

Only nonpayment will appear on your credit report. Hospitals generally do not report payment agreements that are being kept up.

[Trixie007]

Ask to get the payment arrangements in writing, then keep copies of all cancelled checks, then submit all to the bureaus yourself. You can do this with utility bills too.

[aces67]

Hospitals usually only report non payment. Nice huh? We have a couple of banks here that are the same way. You can pay ontime every month and they never report it but you miss one payment and they report it right away.